BILL NUMBER: AB 2659	CHAPTERED  09/23/00

	CHAPTER   580
	FILED WITH SECRETARY OF STATE   SEPTEMBER 23, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 22, 2000
	PASSED THE ASSEMBLY   AUGUST 30, 2000
	PASSED THE SENATE   AUGUST 29, 2000
	AMENDED IN SENATE   AUGUST 22, 2000
	AMENDED IN SENATE   JUNE 7, 2000
	AMENDED IN ASSEMBLY   APRIL 6, 2000

INTRODUCED BY   Assembly Member Lempert

                        FEBRUARY 25, 2000

   An act to amend Sections 15268, 15270, and 47605 of the Education
Code, relating to education.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2659, Lempert.  Education.
   (1) Existing law, if the "Smaller Classes, Safer Schools and
Financial Accountability Act" is passed at the November 7, 2000,
general election, authorizes a school district or community college
district to pursue the authorization and issuance of bonds by a 55%
vote of the electorate and restricts the rate at which property taxes
may be levied to service the debt incurred.
   This bill would instead prohibit the issuance of the bonds unless
the tax rate levied to meet the requirements of Section 18 of Article
XVI of the California Constitution in the case of an indebtedness
incurred by a school district, unified school district, or community
college district at a single election would not exceed a specified
amount per year per $100,000 of taxable property when assessed
valuation is projected by the district to increase in accordance with
Article XIIIA of the California Constitution.  The bill would
define, for specified purposes, a "general obligation bond."
   (2) Existing law prohibits the governing board of a school
district or county board of education from denying a petition for the
establishment of a charter school unless it sets forth specific
findings, including findings that the petition does not contain
reasonably comprehensive descriptions of certain criteria.  Existing
law authorizes the State Board of Education to grant a petition for
the establishment of a charter school when the petition has been
submitted to and denied by the governing board of a school district
or a county board of education.
   This bill would require the State Board of Education to develop
criteria to be used for review and approval of charter school
petitions presented to the board.  The bill would require the board
to adopt the criteria on or before June 30, 2001.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  (a) The Legislature hereby finds and declares all of
the following:
   (1) Paragraph (1) of subdivision (j) of Section 47605 of the
Education Code allows a charter school petitioner to submit a
petition for the establishment of a charter school directly to the
State Board of Education if the governing board of a school district
denies the petition.
   (2) Under current law, the governing board of a school district or
county board of education is prohibited from denying a petition for
the establishment of a charter school unless it sets forth specific
findings, including findings that the petition does not contain
reasonably comprehensive descriptions of certain criteria.  Use of
the term "reasonably comprehensive" is somewhat subjective and should
be defined, consistent with the intent of existing charter school
law, and within the context of a rubric that will be used for the
evaluation of charter school petitions under review by the State
Board of Education.
   (3) In order to ensure implementation of the appeal process
established in law, clear criteria must be established for the review
and approval of charter petitions.
   (b) It is the intent of the Legislature that the State Board of
Education shall review a petition for the establishment of a charter
school pursuant to subdivision (b) of Section 47605 of the Education
Code, which prescribes the reasons why a charter can be denied,
provided it makes written factual findings, specific to the
particular petition.
  SEC. 2.  Section 15268, as added by Chapter 44 of the Statutes of
2000 is amended to read:
   15268.  The total amount of bonds issued, including bonds issued
pursuant to Chapter 1 (commencing with Section 15100), shall not
exceed 1.25 percent of the taxable property of the district as shown
by the last equalized assessment of the county or counties in which
the district is located.  The bonds may only be issued if the tax
rate levied to meet the requirements of Section 18 of Article XVI of
the California Constitution in the case of indebtedness incurred by a
school district pursuant to this chapter, at a single election,
would not exceed thirty dollars ($30) per year per one hundred
thousand dollars ($100,000) of taxable property when assessed
valuation is projected by the district to increase in accordance with
Article XIIIA of the California Constitution.  For purposes of this
section, the taxable property of a district for any fiscal year shall
be calculated to include, but not be limited to, the assessed value
of all unitary and operating nonunitary property of the district,
which shall be derived by dividing the gross assessed value of the
unitary and operating nonunitary property within the district for the
1987-88 fiscal year by the gross assessed value of all unitary and
operating nonunitary property within the county in which the district
is located for the 1987-88 fiscal year, and multiplying that result
by the gross assessed value of all unitary and operating nonunitary
property of the county on the last equalized assessment roll.
  SEC. 3.  Section 15270, as added by Chapter 44 of the Statutes of
2000, is amended to read:
   15270.  (a) Notwithstanding Sections 15102 and 15268, any unified
school district may issue bonds pursuant to this article that, in
aggregation with bonds issued pursuant to Chapter 1 (commencing with
Section 15100), may not exceed 2.5 percent of the taxable property of
the district as shown by the last equalized assessment of the county
or counties in which the district is located.  The bonds may only be
issued if the tax rate levied to meet the requirements of Section 18
of Article XVI of the California Constitution in the case of
indebtedness incurred pursuant to this chapter at a single election,
by a unified school district, would not exceed sixty dollars ($60)
per year per one hundred thousand dollars ($100,000) of taxable
property when assessed valuation is projected by the district to
increase in accordance with Article XIIIA of the California
Constitution.
   (b) Notwithstanding Sections 15102 and 15268, any community
college district may issue bonds pursuant to this article that, in
aggregation with bonds issued pursuant to Chapter 1 (commencing with
Section 15100), may not exceed 2.5 percent of the taxable property of
the district as shown by the last equalized assessment of the county
or counties in which the district is located.  The bonds may only be
issued if the tax rate levied to meet the requirements of Section 18
of Article XVI of the California Constitution in the case of
indebtedness incurred pursuant to this chapter at a single election,
by a community college district, would not exceed twenty-five dollars
($25) per year per one hundred thousand dollars ($100,000) of
taxable property when assessed valuation is projected by the district
to increase in accordance with Article XIIIA of the California
Constitution.
   (c) In computing the outstanding bonded indebtedness of any
unified school district or community college district for all
purposes of this section, any outstanding bonds shall be deemed to
have been issued for elementary school purposes, high school
purposes, and community college purposes, respectively, in the
respective amounts that the proceeds of the sale of those outstanding
bonds, excluding any premium and accrued interest received on that
sale, were or have been allocated by the governing board of the
unified school district or community college district to each of
those purposes respectively.
   (d) For purposes of this section, the taxable property of a
district for any fiscal year shall be calculated to include, but not
be limited to, the assessed value of all unitary and operating
nonunitary property of the district, which shall be derived by
dividing the gross assessed value of the unitary and operating
nonunitary property within the district for the 1987-88 fiscal year
by the gross assessed value of all unitary and operating nonunitary
property within the county in which the district is located for the
1987-88 fiscal year, and multiplying the result by the gross assessed
value of all unitary and operating nonunitary property of the county
on the last equalized assessment roll.  In the event of the
unification of two or more school districts subsequent to the 1987-88
fiscal year, the assessed value of all unitary and operating
nonunitary property of the unified district shall be deemed to be the
total of the assessed value of the taxable property of each of the
unifying districts as that assessed value would be determined under
Section 15268.
   (e) For the purposes of this article, "general obligation bonds,"
as that term is used in Section 18 of Article XVI of the California
Constitution, means bonds of a school district or community college
district the repayment of which is provided for by this chapter and
Chapter 1 (commencing with Section 15100) of Part 10.
  SEC. 4.  Section 47605 of the Education Code is amended to read:
   47605.  (a) (1) Except as set forth in paragraph (2), a petition
for the establishment of a charter school within any school district
may be circulated by any one or more persons seeking to establish the
charter school.  The petition may be submitted to the governing
board of the school district for review after either of the following
conditions are met:
   (A) The petition has been signed by a number of parents or
guardians of pupils that is equivalent to at least one-half of the
number of pupils that the charter school estimates will enroll in the
school for its first year of operation.
   (B) The petition has been signed by a number of teachers that is
equivalent to at least one-half of the number of teachers that the
charter school estimates will be employed at the school during its
first year of operation.
   (2) In the case of a petition for the establishment of a charter
school through the conversion of an existing public school, that
would not be eligible for a loan pursuant to subdivision (b) of
Section 41365, the petition may be circulated by any one or more
persons seeking to establish the converted charter school.  The
petition may be submitted to the governing board of the school
district for review after the petition has been signed by not less
than 50 percent of the permanent status teachers currently employed
at the public school to be converted.
   (3) A petition shall include a prominent statement that a
signature on the petition means that the parent or guardian is
meaningfully interested in having his or her child, or ward, attend
the charter school, or in the case of a teacher's signature, means
that the teacher is meaningfully interested in teaching at the
charter school.  The proposed charter shall be attached to the
petition.
   (b) No later than 30 days after receiving a petition, in
accordance with subdivision (a), the governing board of the school
district shall hold a public hearing on the provisions of the
charter, at which time the governing board of the school district
shall consider the level of support for the petition by teachers
employed by the district, other employees of the district, and
parents.  Following review of the petition and the public hearing,
the governing board of the school district shall either grant or deny
the charter within 60 days of receipt of the petition, provided,
however, that the date may be extended by an additional 30 days if
both parties agree to the extension.  In reviewing petitions for the
establishment of charter schools pursuant to this section, the
chartering authority shall be guided by the intent of the Legislature
that charter schools are and should become an integral part of the
California educational system and that establishment of charter
schools should be encouraged.  A school district governing board
shall grant a charter for the operation of a school under this part
if it is satisfied that granting the charter is consistent with sound
educational practice.  The governing board of the school district
shall not deny a petition for the establishment of a charter school
unless it makes written factual findings, specific to the particular
petition, setting forth specific facts to support one or more of the
following findings:
   (1) The charter school presents an unsound educational program for
the pupils to be enrolled in the charter school.
   (2) The petitioners are demonstrably unlikely to successfully
implement the program set forth in the petition.
   (3) The petition does not contain the number of signatures
required by subdivision (a).
   (4) The petition does not contain an affirmation of each of the
conditions described in subdivision (d).
   (5) The petition does not contain reasonably comprehensive
descriptions of all of the following:
   (A) A description of the educational program of the school,
designed, among other things, to identify those whom the school is
attempting to educate, what it means to be an "educated person" in
the 21st century, and how learning best occurs.  The goals identified
in that program shall include the objective of enabling pupils to
become self-motivated, competent, and lifelong learners.
   (B) The measurable pupil outcomes identified for use by the
charter school.  "Pupil outcomes," for purposes of this part, means
the extent to which all pupils of the school demonstrate that they
have attained the skills, knowledge, and attitudes specified as goals
in the school's educational program.
   (C) The method by which pupil progress in meeting those pupil
outcomes is to be measured.
   (D) The governance structure of the school, including, but not
limited to, the process to be followed by the school to ensure
parental involvement.
   (E) The qualifications to be met by individuals to be employed by
the school.
   (F) The procedures that the school will follow to ensure the
health and safety of pupils and staff.  These procedures shall
include the requirement that each employee of the school furnish the
school with a criminal record summary as described in Section 44237.

   (G) The means by which the school will achieve a racial and ethnic
balance among its pupils that is reflective of the general
population residing within the territorial jurisdiction of the school
district to which the charter petition is submitted.
   (H) Admission requirements, if applicable.
   (I) The manner in which annual, independent, financial audits
shall be conducted, which shall employ generally accepted accounting
principles, and the manner in which audit exceptions and deficiencies
shall be resolved to the satisfaction of the chartering authority.
   (J) The procedures by which pupils can be suspended or expelled.
   (K) The manner by which staff members of the charter schools will
be covered by the State Teachers' Retirement System, the Public
Employees' Retirement System, or federal social security.
   (L) The public school attendance alternatives for pupils residing
within the school district who choose not to attend charter schools.

   (M) A description of the rights of any employee of the school
district upon leaving the employment of the school district to work
in a charter school, and of any rights of return to the school
district after employment at a charter school.
   (N) The procedures to be followed by the charter school and the
entity granting the charter to resolve disputes relating to
provisions of the charter.
   (O) A declaration whether or not the charter school shall be
deemed the exclusive public school employer of the employees of the
charter school for the purposes of the Educational Employment
Relations Act (Chapter 10.7 (commencing with Section 3540) of
Division 4 of Title 1 of the Government Code).
   (c) (1) Charter schools shall meet all statewide standards and
conduct the pupil assessments required pursuant to Section 60605 and
any other statewide standards authorized in statute or pupil
assessments applicable to pupils in noncharter public schools.
   (2) Charter schools shall on a regular basis consult with their
parents and teachers regarding the school's educational programs.
   (d) (1) In addition to any other requirement imposed under this
part, a charter school shall be nonsectarian in its programs,
admission policies, employment practices, and all other operations,
shall not charge tuition, and shall not discriminate against any
pupil on the basis of ethnicity, national origin, gender, or
disability.  Except as provided in paragraph (2), admission to a
charter school shall not be determined according to the place of
residence of the pupil, or of his or her parent or guardian, within
this state, except that any existing public school converting
partially or entirely to a charter school under this part shall adopt
and maintain a policy giving admission preference to pupils who
reside within the former attendance area of that public school.
   (2) (A) A charter school shall admit all pupils who wish to attend
the school.
   (B) However, if the number of pupils who wish to attend the
charter school exceeds the school's capacity, attendance, except for
existing pupils of the charter school, shall be determined by a
public random drawing.  Preference shall be extended to pupils
currently attending the charter school and pupils who reside in the
district.  Other preferences may be permitted by the chartering
authority on an individual school basis and only if consistent with
the law.
   (C) In the event of a drawing, the chartering authority shall make
reasonable efforts to accommodate the growth of the charter school
and, in no event, shall take any action to impede the charter school
from expanding enrollment to meet pupil demand.
   (e) No governing board of a school district shall require any
employee of the school district to be employed in a charter school.
   (f) No governing board of a school district shall require any
pupil enrolled in the school district to attend a charter school.
   (g) The governing board of a school district shall require that
the petitioner or petitioners provide information regarding the
proposed operation and potential effects of the school, including,
but not limited to, the facilities to be utilized by the school, the
manner in which administrative services of the school are to be
provided, and potential civil liability effects, if any, upon the
school and upon the school district.  The petitioner or petitioners
shall also be required to provide financial statements that include a
proposed first-year operational budget, including startup costs, and
cash-flow and financial projections for the first three years of
operation.
   (h) In reviewing petitions for the establishment of charter
schools within the school district, the school district governing
board shall give preference to petitions that demonstrate the
capability to provide comprehensive learning experiences to pupils
identified by the petitioner or petitioners as academically low
achieving pursuant to the standards established by the State
Department of Education under Section 54032.
   (i) Upon the approval of the petition by the governing board of
the school district, the petitioner or petitioners shall provide
written notice of that approval, including a copy of the petition, to
the State Board of Education.
   (j) (1) If the governing board of a school district denies a
petition, the petitioner may elect to submit the petition for the
establishment of a charter school to either the county board of
education or directly to the State Board of Education.  The county
board of education or the State Board of Education, as the case may
be, shall review the petition pursuant to subdivision (b).  If the
petitioner elects to submit a petition for establishment of a charter
school to the county board of education and the county board of
education denies the petition, the petitioner may file a petition for
establishment of a charter school with the State Board of Education.

   (2) In assuming its role as a chartering agency, the State Board
of Education shall develop criteria to be used for the review and
approval of charter school petitions presented to the State Board of
Education.  The criteria shall address all elements required for
charter approval, as identified in subdivision (b) of Section 47605
and shall define "reasonably comprehensive" as used in paragraph (5)
of subdivision (b) of Section 47605 in a way that is consistent with
the intent of the Charter Schools Act of 1992.  Upon satisfactory
completion of the criteria, the State Board of Education shall adopt
the criteria on or before June 30, 2001.
   (3) A charter school for which a charter is granted by either the
county board of education or the State Board of Education pursuant to
this subdivision shall qualify fully as a charter school for all
funding and other purposes of this part.
   (4) If either the county board of education or the State Board of
Education fails to act on a petition within 120 days of receipt, the
decision of the governing board of the school district, to deny a
petition shall, thereafter, be subject to judicial review.
   (5) The State Board of Education shall adopt regulations
implementing this subdivision.
   (6) Upon the approval of the petition by the county board of
education, the petitioner or petitioners shall provide written notice
of that approval, including a copy of the petition to the State
Board of Education.
   (k) (1) The State Board of Education may, by mutual agreement,
designate its supervisorial and oversight responsibilities for a
charter school approved by the State Board of Education to any local
education agency in the county in which the charter school is located
or to the governing board of the school district that first denied
the petition.
   (2) The designated local education agency shall have all
monitoring and supervising authority of a chartering agency,
including, but not limited to, powers and duties set forth in Section
47607, except the power of revocation, which shall remain with the
State Board of Education.
   (3) A charter school that has been granted its charter by the
State Board of Education and elects to seek renewal of its charter
shall, prior to expiration of the charter, submit its petition for
renewal to the governing board of the school district that initially
denied the charter.  If the governing board of the school district
denies the school's petition for renewal, the school may petition the
State Board of Education for renewal of its charter.
   (l) Teachers in charter schools shall be required to hold a
Commission on Teacher Credentialing certificate, permit, or other
document equivalent to that which a teacher in other public schools
would be required to hold.  These documents shall be maintained on
file at the charter school and shall be subject to periodic
inspection by the chartering authority.  It is the intent of the
Legislature that charter schools be given flexibility with regard to
noncore, noncollege preparatory courses.
